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That article is a bit detached from the real world. There is a reason Wal Mart is the biggest retailer on Earth and it's because most people don't have much money.
That being said a huge number of people who bought netbooks were people who simply couldn't afford a full size laptop/desktop. Then netbooks starting getting a bit more expensive and full size notebooks starting getting cheaper. You can get a full size 15 inch laptop for $400 now. That's what is chipping into the netbook market most.
Also, the netbook was always sort of a fad and a tweener type technology to fill a gap.
Not to mention, last year 35 million + netbooks were sold. One million iPads have been sold. To say the iPad is what is chipping away at the netbook market is sort of silly. If fact, I bet most ipad buyers own a netboook as well.
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